The U.S. Court of Appeals for the Federal Circuit's stay of the Court of International Trade decision vacating all International Emergency Economic Powers Act tariff action likely doesn't signal a win for either side on the merits of the issue, various attorneys told us. In addition, the court's move to set a July 31 oral argument date and have all active judges hear the case indicates a decision will likely be issued in August, the attorneys said.
The Court of International Trade on June 12 sustained the Commerce Department's remand results in the countervailing duty investigation on wooden cabinets and vanities from China. Judge Richard Eaton said Commerce complied with his remand instructions by prorating the countervailing duty set on exporter The Ancientree Cabinet to account for the percentage of its U.S. customers that failed to verify nonuse of China's Export Buyer's Credit Program. As a result, Commerce lowered Ancientree's CVD cash deposit rate from 13.33% to 5.06% and calculated individual CVD rates for the exporter's U.S. buyers, though the agency said the cash deposit rate has been superseded by the cash deposit rate given to Ancientree based on the 2022 review of the CVD order.
The following lawsuits were filed recently at the Court of International Trade:
Importer AB Specialty Silicones' launched another case at the Court of International Trade to contest CBP's classification of its specialty silicone chemicals as organic-silicone compounds instead of as silicone compounds or organo-inorganic compounds. In a June 4 complaint, AB challenged the classification of one entry of its silicone compounds, arguing that it should only pay 3.7% duties for the product under Harmonized Tariff Schedule subheading 2910.90.9051 or 3% under subheading 3910.00.0000 (AB Specialty Silicones v. United States, CIT # 25-00099).
The U.S. renewed a cross-motion for judgment June 6 regarding the classification of importer HyAxiom’s hydrogen fuel cell generator components, saying the importer’s product was “a multi-functional machine” classifiable under Harmonized Tariff Schedule heading 8479. The government’s initial motion was dismissed by Court of International Trade Judge Timothy Stanceu in August 2024 (see 2408290019) (HyAxiom v. United States, CIT # 21-00057).
After a second remand by the Court of International Trade (see 2503110034), the Commerce Department said it analyzed five additional (k)(2) factors, as ordered, and as a result determined that exporter Elysium Tiles’ composite tiles weren't actually covered by antidumping duty and countervailing duty orders on ceramic tiles from China (Elysium Tiles v. United States, CIT # 23-00041).
As the U.S. Court of Appeals for the Federal Circuit mulls the government's emergency stay motion against a Court of International Trade decision permanently enjoining tariffs issued under the International Emergency Economic Powers Act, five different groups of amici filed briefs at the appellate court either attacking or defending the trade court's ruling.
The parties contesting the government's emergency stay motion at the U.S. Court of Appeals for the Federal Circuit of the Court of International Trade's ruling on the president's use of the International Emergency Economic Powers Act tariffs "mischaracterize" statements made by administration officials on the effect of the CIT's ruling, the U.S. said. Responding to claims from 12 U.S. states and a group of importers, the government argued that the trade court's injunction against the IEEPA tariffs is "legally untenable and risks irreparable economic and national-security harms" (V.O.S. Selections v. Donald J. Trump, Fed. Cir. # 25-1812).
The Court of International Trade on June 11 said CBP waited too long to demand payment on unpaid antidumping duties from surety company Aegis Security Insurance. Judge Jane Restani held both that CBP violated the implied condition of reasonableness in customs bonds in waiting eight years to demand payment and that the agency violated the six-year statute of limitations in which the government can demand payment. Restani became the third CIT judge to rule on the issue of whether CBP can demand payment from surety companies years after the underlying entry was liquidated, siding with one of her colleagues in finding that the statute of limitations runs from the date of liquidation and not the date CBP demands payment.
The U.S. Court of Appeals for the Federal Circuit on June 10 stayed the Court of International Trade's decision vacating all of President Donald Trump's executive orders implementing tariffs under the International Emergency Economic Powers Act, pending the government's appeal of the case. In a per curium order, all CAFC judges in regular active service merely said "a stay is warranted under the circumstances" (V.O.S. Selections v. Trump, Fed. Cir. # 25-1812).